Page 114 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes In this approach, individuals from various departments are brought together to spend two
or three days’ working on an individual or group assignment similar to the ones they would
be handling when promoted. Evaluators observe and rank the performance of all the
participants. Experienced managers with proven ability serve as evaluators. This group
evaluates all employees both individually and collectively by using simulation techniques
like role playing, business games and in basket exercises. Assessments are done generally
to determine employee potential for promotion.
Following are the drawbacks of this method:
1. Costly: Organizations have to pay for the travel and lodging cost of the employees to
be assessed. Moreover the work of an organization also suffers for the time period they
are away from the job. The companies have to pay heavy expenditure in establishment
of assessment centres.
2. Impression of the employees: Centre staff is influenced by the subjective elements, such
as social skills and personality of the employee rather than the quality of their work.

3. Demoralize an employee: A negative report for an employee may demoralize an employee.
It may have an adverse effect on the behaviour and work of an employee who is not
promoted.
4. Promotes unhealthy competition: It promotes strong and unhealthy competition among
the employees that are assessed.
5. Overemphasis on centre results: This method overemphasises the result of the centre,
which is based on judgement of employees over a short span of time.
Human Resource Accounting Method

Human resources are a valuable asset of any organization. This asset can be valued in terms
of money. When competent and well-trained employees leave an organization the human
asset is decreased and vice versa.

Human Resource Accounting deals with cost of and contribution of human resources to the
organization. Cost of the employee includes cost of manpower planning, recruitment,
selection, induction, placement, training, development, wages and benefits, etc. Employee
contribution is the money value of employee service which can be measured by labour
productivity or value added by human resources. Difference between cost and contribution
will reflect the performance of employees.
Human resource accounting method is still in the transition stage. The contribution made
by employee can be measured in terms of output.
If the cost incurred on employee is greater than the contribution made then this is an
indicator of finding out the causes of low performance, analysing it and then making a
proper check to control such causes. In case the contribution is more or equivalent to the
cost incurred then this also requires review for future reference.
The various techniques under human resource accounting methods are:
• Probationary reviews
• Informal one-to-one review discussions
• Counselling meetings
• Observation on the job
• Skill–or job–related tests
• Assignment or task followed by review, including secondments (temporary job over
or transfer)
• Survey of opinion of others who have dealings with the individual
• Graphology (handwriting analysis)

108 LOVELY PROFESSIONAL UNIVERSITY